First Time Homebuyers

is
an exciting experience, but it can also be unnerving and
stressful. Familiarizing yourself with the process in advance can
help ease those buying jitters. Always remember, as your Realtor,
part of my job is to answer your questions and inform you
throughout the entire
buying process.

What you should know before
you start.....

Know your Credit
Score
and Credit Report .....

Know your Borrowing Ability.....

Know How
much available money you have.....

Downpayment and closing cost?

Downpayments can ranger from 3.5% to as
much as you would like to spend, and depending on the type of
loan, normal closing cost will generally set you back 3.5% to 4.5% of the
purchase price. This
is typical for conforming loans.

FHA allows for a down payment to
be as little as 3.5% with a credit score as low as a 580, but
keep in mind, many banks still require a
minimum 620 score before they will lend on a home purchase.
It’s their choice!!

The positive

aspects of using an FHA
loan is a small downpayment and lower closing cost, if you
role in the up front MIP: the negative catch is a large monthly mortgage insurance payment (MIP), which
in turn increases your overall monthly payment.

If you
have decent credit and can swing 5% for a
downpayment, a conventional loan may be the better choice.
Closing cost and monthly mortgage payments are usually less
expensive. Have your mortgage lender do a comparison.

For those who prefer a more rural
place to live USDA still offers a 0% downpaymenrt loan but closing cost
still apply.

FHA has the highest over all cost for closing ranging around 4.5%. Conventional loans
will set you back about 3.5% of the purchase price.

Add the down-payment to the closing cost and that is your total.
Some sellers will agree to pay part or all of your closing cost if
you present them with a good offer but in todays market, that may not be a good
negotiating strategy.

The
amount due at closing may sound high but consider this, it is now
cheaper to own a house then it
is to rent, your yearly
tax deduction will pay the closing cost back to you in short
order, and you now own an asset that can help secure your
financial future….no more paying for the landlords future.

Determine
how much you have to spend on your monthly payment.

Examine your income and current debt, determine
the amount you would feel comfortable spending every month on the
mortgage payment, think of it as rent with taxes, insurance, and
MIP rolled in. Use this amount as a benchmark when determining the
maximum purchase price. Just because a lender approves you for a
$200,000 or $300,000 loan, doesn't mean you want to borrow that
much. Make sure you have enough money left over for entertainment,
travel, or other various activities you have come to enjoy, and
don’t forget about the monthly utilities.

To find out how
much the lender will agree to lend for your real estate purchase,
you will need to get
pre-approved. The lender will examine your
financial status along with your credit score and job history to
determine the size of the loan and what
interest rate you will be
offered; great credit and good financials get the best rates.

After formulating
your budget, you'll need to select the area or neighborhoods
you’re interested in. Some buyers want to look for homes that are
close to their work or their choice of schools, a location with
active entertainment and dining, a newer build, or maybe a home
with old neighborhood charm? Other homebuyers just want to buy
within a certain city. These preferences are entirely up to you.
As your Realtor I can help find the house you’re looking for but
keep in mind, the more specific your criteria, the fewer choices
you will have. For instance, if you have children and want them to
attend a particular school, the selection of available homes will
already be limited to your price range, add on top of that your
desire to buy only single story homes that have a minimum of four
bedrooms with large back yards and you may be looking at less then
a hand full of properties to choose from.

If you are a first
time homebuyer and have no idea which subdivisions have homes in
your price range, contact me with your general search criteria and
I will survey all available prospects for you. As a real estate
agent in Texas I have access to the entire MLS system. Utilizing a
list of specifications created by you, the MLS can sift through
thousands of listings to come up with a very specific group of
possibilities. If you would like to investigate yourself, a
Google search can provide you with a large selection of IDX sites
to search from. Realtor.com is one of the largest, open to the
public, and a great place to start your search. This site also
provides you with a variety of options to help you find
Dallas real estate listings. Keep in mind,
although many website provider sites populate from our MLS system, it can
take considerable time to display a change in status when a house
goes under contract. These sites are great for looking at
possibilities but always have your real estate agent double check
the availability through the MLS. In an area where homes sell
quickly, it would not be unusual to find half of your selections
to be already under contract and on the way to closing.

Now it’s time to
View properties.

With your
pre-approval letter in hand and a list of your favorite
properties, appointments will be set and then it’s time to take a
look.

If you're in the
market to buy a house or just considering your options
contact me
at 214-336-7088 for more information

Buying your first home is going to
be exciting, and I am going to be with you every step of the
way. One thing I like to do with my buyers is prepare them
for what to expect. As an Accredited Buyer’s Representative
(ABR®), helping buyers is my business. Please let me know if
you have any questions. I look forward to working with you
and getting you into your first home!

First Time Homebuyers and FHA loans.

First time buyers may want to
consider using an FHA guarantied loan for their first
purchase.

Some advantages are:

Lower Down Payment.....Your
down payment can be as low as 3.5% of the purchase price.

Seller paid closing
cost......Up to 3% of the closing costs and fees can be paid by
the seller or in some cases, the lender.

Easier credit qualifying.....Most lenders will allow a credit score as low as 620 to
qualify.